Just as oil can be used on the downside to ‘see’ the next correction (-10%), it can also be used to jump on the SPY rebound train.

Below oil rises rapidly From Feb 16-Mar 1. +$7 in 2 weeks!

And SPY continues to rise after its 10% correction in Jan. Play would be Mar 1- 18.

The idea here is the staircase up. The market will tend to rise and rise until 2020 therefore rebounding the 2nd month after a fall. The indicator is the oil price.  It appears that oil has some sort of bottom when the buyers return and the staircase up continues for SPY. Oil may have a lower downside resistance now perhaps $20?  This implies a shorter risk/on off cycle now perhaps 1 year instead of 18 months. With the Fed raising rates…market time will accelerate and is expected.

Transition to risk on clear on Feb 23!